1. HUMAN RESOURCE PLANNING
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HUMAN RESOURCE PLANNING

2. ANNOTATED OUTLINE INTRODUCTION
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ANNOTATED OUTLINE
INTRODUCTION
HRP offers an accurate estimate of the number of employees required with matching skill requirements to meet organisational objectives. HRP is a forward looking function as human resource estimates are made well in advance. It is, of course, subject to revision.
Human Resource Planning

3. Objectives of human resource planning
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Objective
The basic purpose of HRP is to decide what positions the organisation will have to fill and how to fill them.
Objectives of human resource planning
Forecast personnel requirements
Cope with changes
Use existing manpower productively
Promote employees in a systematic way
Human Resource Planning

4. Importance of human resource planning
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Importance
Organisations use HRP to meet future challenges, cut costs, and achieve greater effectiveness
Importance of human resource planning
Create a talent pool
Prepare people for future
Cope with organisational changes
Cut costs
Help succession planning
Human Resource Planning

5. Forecasting the demand for human resources
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The Process Of HRP
The HRP is a four step process: demand forecasting, supply forecasting, estimating manpower gaps and formulating HR plans. The demand for human resources is influenced by several factors
Forecasting the demand for human resources
External challenges
Economic developments
Political, legal, social, technological changes
Competition
Organisational decisions
Workforce factors
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The Process Of HRP
External Challenges: Liberalisation, privatisation and globalisation (LPG era) have created huge demand for people in software, finance marketing, and manufacturing fields.
Organisational Decisions: Decisions such as expansion, diversification, and relocation leading to demand for people possessing requisite skills
Workforce Factors: Such as retirement, resignation, and termination etc creating manpower gaps.
Human Resource Planning

7. Forecasting Techniques
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Forecasting Techniques
HR forecasts are an attempt to find out an organisation's future demand for employees
Forecasting techniques
Expert forecasts
Trend analysis
Workforce analysis
Workload analysis
Human Resource Planning

8. An example of trend analysis
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Forecasting techniques
Expert Forecasts: These are based on the judgements of those who possess good knowledge of future human resource needs
Trend Analysis: This is based on the assumption that the future is an extrapolation from the past. Human resource needs, as such, can be estimated by examining pas trends.
An example of trend analysis
Production of Units : 5,000
No. of Workers : 100
Ratio : 100:5000
Estimated Production : 8,000
No. of Workers required : 8000 × = 160
If supervisors have a span of 20 workers, 8 supervisors are also needed in
Human Resource Planning

9. Forecasting techniques
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Forecasting techniques
Workforce Analysis: All relevant factors in planning manpower flows in a firm such as transfers, promotions, new recruitments, retirement, resignation, dismissal etc are taken into account while estimating HR needs
Manpower flows in a bank
Human Resource Planning

10. Forecasting techniques
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Forecasting techniques
Workload analysis: Based on the planned output, a firm tires to calculate the number of persons required for various jobs.
An example of workload analysis
Planned output for the year 10,000 pieces
Standard hours per piece hours
Planned hours required 30,000 hours
Productive hours per person per year 1,000 hours (estimated on annual basis)
(allowing for absenteeism, turnover, idle time etc.)
No. of workers required
If span of control in the unit is 10 per officer, then 3 officers are also required.
Human Resource Planning

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Supply Forecasting
A) Internal labour supply: a manpower inventory in terms of the size and quality of personnel available (their age, sex, education, training, experience, job performance, etc) is usually prepared by HR departments. Several techniques are used while ascertaining the internal supply of manpower (a supply of employees to fill projected vacancies can come from within the firm or from new hires )
Human Resource Planning

12. Estimated internal labour supply for a given firm
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Estimated internal labour supply for a given firm
Human Resource Planning

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Supply Forecasting
Staffing table: Shows the number of employees in each job, how they are utilised and the future employment needs for each type of job.
Marcov analysis: Uses historical information from personnel movements of the internal labour supply to predict what will happen in the future
Human Resource Planning

14. Marcov analysis for a hypothetical retail company
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Marcov analysis for a hypothetical retail company
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Supply Forecasting
Skills inventory: It is a summary of the skills and abilities of non managerial employees used in forecasting supply.
Human Resource Planning

16. Skills inventory: an example
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Skills inventory: an example
Human Resource Planning

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Supply Forecasting
Replacement chart: It is a visual representation of who will replace whom in the event of a job opening.
Human Resource Planning

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Replacement chart
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Supply Forecasting
B) External Labour supply: External hires need to be contacted when suitable internal replacements are not available. A growing number of firms are now using computerised human resource information systems to track the qualifications of hundreds or thousands of employees. HRIS can provide managers with a listing of candidates with required qualifications after scanning the data base.
Human Resource Planning

20. Important barometers of labour supply
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Important barometers of labour supply
1. Net migration into and out of the area
2. Education levels of workforce
3. Demographic changes in population
4. Technological developments and shifts
5. Population Mobility
6. Demand for specific skills
7. National, regional unemployment rates
8. Actions of competing employers
9. Government policies, regulations, pressures
10. Economic Forecasts for the next few years
11. The attractiveness of an area
12. The attractiveness of an industry in a particular place
Human Resource Planning

21. Estimating manpower requirements
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Manpower Gap Analysis
This is used to reconcile the forecasts of labour demand and supply. This process identifies potential skill shortages or surpluses of employees, skills and jobs
Estimating manpower requirements
Human Resource Planning

22. Formulating HR Plans A variety of HR plans
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Formulating HR Plans
Once supply and demand for labour is known adjustments can be made formulating requisite HR plans
A variety of HR plans
Recruitment plan
Redeployment plan
Redundancy plan
Training plan
Productivity plan
Retention plan
Human Resource Planning

23. Responsibility For Human Resource Planning
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Responsibility For Human Resource Planning
HRP is a top management job. HR plans are usually made by the HR division in consultation with other corporate heads. Any deviations from the formulated plans and their causes must be looked into, from time to time in order to assess whether the plans require revision or modification.
Human Resource Planning

24. Limitations Of Human Resource Planning
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Limitations Of Human Resource Planning
HR professionals are basically confronted with three problems while preparing and administering HR plans: accuracy, inadequate top management support, lopsided focus on quantitative aspects.
Human Resource Planning

25. Effective Human Resource Planning
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Effective Human Resource Planning
HR plans must fit in with overall objectives of a firm. They must get consistent support from top management. Computerised human resource information systems must be used for applicant tracking, succession planning, building skills inventories etc. The whole exercise must be carried out in coordination with operating managers.
Human Resource Planning